Dubai debt fears stalk world markets

European stock markets rebounded Friday after Wall Street didn't fall as much as feared on the news that Dubai is having trouble handling its debt.

Because U.S. markets were closed for Thanksgiving Day on Thursday, they are only reacting now to the fears that Dubai's debt problems may affect the wider financial system.

In Europe, the FTSE 100 index of leading British shares closed up 51.60 points, or 1 percent, at 5,245.73 while Germany's DAX rose 71.44 points, or 1.3 percent, at 5,685.61. The CAC-40 in France ended 42.22 points, or 1.2 percent, higher at 3,721.45.

On Wall Street, the Dow Jones industrial average was down 137.40 points, or 1.3 …